Showing posts with label sponsorship. Show all posts
Showing posts with label sponsorship. Show all posts

Tuesday, October 11, 2011

"His vision of eyeblack company is paying off"

From the SportsBusiness Journal




Review by Brad Harner in KIN 332 (Section 2)

Peter Beveridge decided one night when he was watching baseball, and saw some baseball players wearing eyeblack patches, that he was going to create a company using this idea already created. He thought that he could put a symbol or logo, such as a Nike “swoosh”, on this patch and sell them. Soon after, he followed his vision and became CEO of the recently created eyeblack.com which is increasing revenue by 35 percent annually. The main trick to his company is that he gets a lot of publicity from fans seeing the players wear his product on the field. Mr. Beveridge has recently signed NFL football players Stevie Johnson and Marshawn Lynch to help promote his new product.

The CEO, Peter Beveridge, believes he can get many fans to start wearing these patches below their eyes when they see famous, well known, athletes wearing them. He had to convince MLB and NFL to approve this product for their players to use, which was not an easy task. MLB and NFL were not questioning whether or not the players would wear the product but rather if this product would sell to fans. They finally approved eyeblack.com and have not regretted their decisions thus far. The company sold 5 million pairs in 2010 and hopes to sell upwards of 7 million pairs of eyeblack patches this year. Eyeblack.com decided to test the product out on some universities to see how the players liked the product before the company produced these patches in bulk. Virginia Tech, University of Miami, University of Florida, and University of Maryland were the schools selected by the company to test out the product. The players gave valuable feedback to the company and the patches have caught on like wildfire since.

I am interested to see if this company will eventually get big deals with sponsors like Allstate or AT&T and get players to wear these products. In my mind there is no better spot to advertise than on a professional athlete’s face while they are playing the game. Player’s faces are shown on television very often throughout a game which could be a very desirable spot for an advertisement.

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Review by Erik Norquist in KIN 332 (Section 2)

EyeBlack.com is a company/website that sells customized eye black for athletes and fans. The designs on the eye black range from team logos, to phrases, to Eyeblack.com’s most recent idea – company logos. Eye black has been around since about the 1920’s when Babe Ruth was the first player ever officially reported to use it. His purpose to wearing the eye black was to reduce the glare, and he used pure grease. This was common, as the first eye black consisted of burnt chalk or grease. Eye black as since then evolved into black tape patches.

CEO Peter Beveridge came up with the idea for EyeBlack.com when he was watching a baseball game about 8 years ago and saw all the players wearing eye black patches. He realized that this could be a profitable opportunity to customize the eye black with designs. He founded EyeBlack.com in 2003 and since then, profits have risen 30-40% per year. Peter estimates that half of all NFL teams, 90% of major college teams, and many MLB teams are using EyeBlack.com products. In addition to that many fans, high school athletes, and middle school athletes are using their products.

EyeBlack.com has tremendous marketing implications. The company’s most recent products have aimed at putting company logos on the eye black. A Nike swoosh or the AT&T logo are just a couple examples of what the designs could be. This means that corporate sponsors will have another opportunity to put their logo on players and advertise their product. Another marketing implication of EyeBlack.com is teams being able to market themselves in a new way. As fans see more and more athletes wearing the eye black, they will become interested in doing the same. There is already a strong EyeBlack.com retail market for fans, according to Peter Beveridge. EyeBlack.com seems to have a very high ceiling for growth, and I have a feeling we will be hearing a lot about them in the years to come.


            

Saturday, October 8, 2011

"More College Athletic Departments Partner With State Lotteries"

From Athletic Business


Review by Zack Miller in KIN 435

There is an annual game every year between Oregon and Oregon State called the Civil War. The Oregon state lottery has seen this big game as a great opportunity to cash in on some promotion by getting sponsorship on a scratch off lotto ticket from Oregon State. They tried to have the same sponsorship from Oregon, but the university’s Athletic Director didn’t feel comfortable with the idea. Instead, while Oregon State has their official logo on the ticket, Oregon has allowed promotional presence to the state lottery at each of its seven home games this year. The lottery offers a good sum of money, $60,000, for allowing the promotional use of the schools. Oregon’s IMG general manager stated that it would be hypocritical to accept the money and not allow some form of promotion for the lottery. After all, the state lotteries have given over $11 million to Oregon in the last 20 years, and over $10 million to Oregon State. I believe that the state lottery has done an excellent job in marketing and finding an easy way to use the classic rivalry game to help promote their product. The ticket is a basic two dollar scratch off and therefore is not a big expenditure for fans who want to try their luck. What is interesting is the difference in the way they have gotten promotion from the two schools. While the “Civil War” game is a state wide event, it is my opinion that Oregon actually offered a better deal to the lottery than Oregon State gives. By being able to show up at all seven home games and have a consistent presence, the loyal fans who show up at every game will realize that state lottery has an invested interest in their school. Therefore, they might be able to sell more lottery products rather than the one big game promotion that Oregon State gives. 

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Review by Dale Robins-Bailey in KIN 435

The question of state lottery affiliation has surfaced recently with many top schools and their football programs having to make decisions. Teams like Oregon, Oregon State and Iowa have all recently signed agreements to be affiliated with their respective state lotteries. Questions of hypocrisy have been raised as some schools do accept lottery funding from the state but choose to opt out of being used in promotional lottery games. Sales of lottery scratch games would increase in those areas if they used local university teams to market them.

Recently a lot of programs have started to jump on the lottery bandwagon but there are some that feel it is not ethical to promote gambling. Some schools do not even agree with the NCAA’s rather unclear stance on the matter. The NCAA prohibits affiliation with state lotteries at NCAA championship events but looks the other way as regards to conference and out of conference games. Their official stance is that they are opposed to all types of gambling but do realize there are financial and promotional benefits of such an affiliation. Having said that the NCAA seems hypocritical in itself as it does allow gambling at the conference level at the same time as wanting to be seen as taking the moral high ground. They are aware that some members of their organization feel that the benefits of being linked with gambling establishments such as Casino’s can help market their schools. The NCAA it is missing out on a huge revenue source here as sales of tickets from championship events would surely bring in more money than conference games.

Schools are now beginning to see the benefits of a partnership with state lotteries. With over 43 states offering lotteries, it is a huge opportunity for advertising. The marketing implications mean that both schools and lotteries benefit from the advertising as schools gain exposure from scratch cards and other promotions, and the lottery improves its public relations when schools make it know they are benefiting from lottery funding. Programs include the Bright Futures program at the University of Miami.

In all, the article highlights the opinions of schools and organizations on the partnership with state lotteries.

Tuesday, October 4, 2011

"PepsiCo expands lucrative NFL partnership"

From SportBusiness

Review by Matt Curtis in KIN 435 


The article that will be critiqued is called “PepsiCo expands lucrative NFL partnership.” The article was about the relationship PepsiCo has with the NFL. It first starts off by saying that PepsiCo has had a 28-year relationship with the NFL and will expand their deal with the NFL for 10 years, lasting through the 2022 play-offs. The article says the exact terms of the deal have not been disclosed but the contract is estimated to be worth $2.3 billion. Under the contract, PepsiCo also sponsors the NFL international series, which is a game that takes place in London and had been running for 5 consecutive years. Pepsi Max is still going to be the official soft drink of the NFL, and the Gatorade G series will support athletes and back education programs. PepsiCo’s Quaker Oats and Tropicana brands will now become partners of the league in order to promote those products. The article ends with saying how the NFL commissioner Roger Goddell, and PepsiCo CEO Indra Nooyi are happy with the deal.

The article was a little vague. It didn’t go into any details about the actual ways they plan on marketing the new products. It also talked about some programs they plan on running but didn’t give any information as to what they were. Also, when talking about the contracts, it didn’t elaborate on what exactly it means to be the official sponsor of the NFL. There are some heavy sales implications that stem from the article however. The contract being worth $2.3 billion was only an estimate, but that shows the importance the NFL means to PepsiCo. They are basically saying that investing $230 million each year into the NFL alone will earn them more than that in revenue. Not to mention the money they will have to spend on their marketing campaigns.

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Review by Sky Powell in KIN 435

PepsiCo has been partners with the NFL for 28 years now, and just recently signed a new contract to extend that for ten more. The contract will last until the 2022 play-offs and is reported to be worth up to $2.3 billion. The new deal will start at the beginning of the 2012 season and is one of the most profitable signing deals ever for the league and a sponsor.

With the agreement, Pepsi will continue to be a sponsor of the NFL International Series, which is when two NFL teams play a regular season game in London. This will be the fifth consecutive year they have done this in an effort to help promote American football to a European crowd.

PepsiCo also plans to gain exposure through the NFL for their other brands as well. They are the owners of Gatorade, Pepsi Max, Frito-Lay, Quaker Oats and Tropicana. Pepsi Max will continue its role as the official soft drink of the NFL, while Gatorade will remain supporting athletes through their Gatorade G Series campaign. Gatorade is also involved in an educational program called “Beat the Heat,” in which they are concerned in teaching athletes, parents, and coaches heat-related illness and the importance of staying hydrated before, during, and after practices and games. Quaker Oats as well as Tropicana will become new partners with the NFL at the beginning of next season and it is estimated that both brands will be investing at least $15 million per year.

Since the 1980’s, Gatorade has been a sponsor of the NFL, but PepsiCo did not gain the main sponsorship of the league until 2002. Their rival, Coca-Cola had held those rights for almost 20 years, but Pepsi was able to strike up a better deal to land the spot as the primary sponsor. Pepsi and the NFL hope to build a better relationship between athletes and fans through their top of the line marketing schemes. They want to work together to bring the fans a more NFL-themed promotion all year round.

I think that the contract is beneficial for both sides because Pepsi is allowed to promote all aspects of their company, while the NFL is going to gain exposure through each of those brands.

Monday, September 26, 2011

"Honda Renews As Official Vehicle Of NHL In U.S."

From The Big Lead


Review by Ryan Stewart in KIN 332 (Section 1)

Honda has teamed up with the NHL again and renewed the contract of being the official car of the NHL. This also gives them the rights to a lot of promotional events at events such as the NHL All Star Game and the NHL Awards. This contract will continue to give Honda a lot of exposure, especially being the only automotive partner of the NHL. They will have reserved areas within NHL arenas that will help them promote their vehicles, as well as on-ice promotions. Most NHL rinks can fit around 15,000 fans which is a great deal of people to expose a product to. Taking into account 41 home games a year for each team, the exposure is phenomenal. Renewing this deal seems to be vital to the success of Honda as a leading automotive company.

Honda seems to have a well thought out plan as to why they are trying to market themselves through the NHL. They have found the right demographic they are looking for as Honda’s brand manager Tom Peyton explains. The NHL is also a very loyal and passionate fan base, which in return could help continue the success of Honda. Many fans stick with their teams throughout everything, and if Honda can convince them to buy a vehicle they may continue to stick with that brand in the future. The NHL fans are somewhat of a secluded demographic, they have a set fan base that stays loyal. I don’t see this market very hard to penetrate. I think this because the demographic is “young, affluent, and educated”. When I think of Honda I feel that the style of the cars they make definitely match the demographic. Honda is making a good choice by hooking up with the NHL.

The NHL is a great business and has many opportunities to help Honda be successful for the remainder of their contract. After the NHL lockout, the league seems to be revamped and exciting. Every year the NHL receives more and more exposure, which in return exposes Honda. All in all, this is a good move by Honda to team up with the NHL and they should see a continued success within this market.

Wednesday, September 21, 2011

"UPS, MillerCoors go in — and go big — on campus"

From SportsBusiness Journal


Review by Adam Carranza in KIN 332 (Section 2)


The start of the new football season began with both UPS and MillerCoors closing huge marketing deals with collegiate schools all over the country. UPS has almost 70 schools on its list stretching from coast to coast with such powerhouses as Texas, Florida, Ohio State and others. They are also in talks with the Big Ten and Pac-12 about sponsorships detailed to their championship games. MillerCoors is dealing with 23 schools across the country, while trying to promote strong messages about responsibility. This deal is coming after Coors Light lost its official partnership with the NFL, as Anheuser-Busch has taken over this season. While the college scene might be a first for MillerCoors, UPS had already made a deal in 2010 to become an NCAA corporate partner. These big multi-school deals seem to becoming a new trend that could catch on quickly, as opposed to dealing with each school individually.

Both companies are using sports to market their non-sport related product or service. The scale of the UPS deal shows just how important collegiate sports have become compared to the professional levels. This could open the door for other companies to try and complete something this large, because the NCAA has proved a worthy source of marketing over the years. Not only will this help UPS in the marketing game, but it could lead to deals with the schools to become their main shipping source. MillerCoors believes that this is a great addition to their marketing mix as they still have deals with many NFL teams, along with fantasy football and the MLB. Their deal is impressive because in the past schools have been hesitant to have a beer company as one of their main sponsors. They are allowed to put college marks on their point-of-sale advertising, but not on any television advertisements. By expanding their marketing attention these companies could pave the way for bigger and better deals in the future.


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Review by Josh Ruffner in KIN 332 (Section 2)

This article is about how UPS and MillerCoors are teaming up with the NCAA creating large sponsorships. This will be a whole new market for both corporations. UPS came upon terms of agreement with about 70 schools and a few conferences a deal worth $25 million a year. The only other corporation with this widespread sponsorship is State Farm which took them about 25 years to partner up with more than 90 schools. UPS will also shoot to gain sponsorship with some of the championship games this season. MillerCoors deal is with about 23 schools. Their idea is to market their product with responsibility messaging from point of sale with college marks. MillerCoors is reaching out to college football in hopes to fill the void from the loss of the NFL partnership. The deal will be somewhere are the $10 million range annually. MillerCoors will have to be careful promoting on college campuses where beer advertising can be sensitive because of underage drinking. UPS and MillerCoors are two of the biggest when it comes to sports marketing and we will see how they fair this coming season.

I think that this is a good idea for both corporations to dive into a new market. I think MillerCoors is doing a great thing by creating a grant program towards campus programs that create awareness about alcohol responsibility. I think they will do well in collegiate athletics because it is such a broad market as fans are more than just students. These large sponsorships are good for collegiate athletics and large corporations. It is going to allow the corporations to promote their product through a whole new market impacting a lot of viewers.

"Metlife steps up to take Meadowlands naming rights"

From SportsPro Media


Review by Matthew Per in KIN 435


The article that Kevin and I decided to present is titled “Metlife Steps up to Take Meadowlands Naming Rights.” The article was written by David Cushnan and posted in Sports Pro Media. It discusses that the new meadowlands stadium has yet to agree on naming rights to the stadium, until now. Its current sponsors are Verizon, Budweiser, Pepsi, and Metlife, but Metlife was the one that gave the best offer for naming rights. Metlife offered twenty million dollars for the next twenty years to receive the naming rights. This comes to a total of $400 million, over the twenty-year span. This is the most expensive naming rights deal done in the National Football League.

Even though this deal was expensive I agree with metlife that it will pay dividends. Metlife stadium is home to the New York Jets and New York Giants. While most stadiums have only one team, Metlife has two. This is double the publicity they are receiving. Also, the stadium will be hosting the 2014 Super Bowl, which will bring a good deal of attention to the stadium.

As Matt Higgins, the New York Jets' executive vice president of business affairs said, “It's got to be the right deal. The value proposition that we've offered is unlike anything anywhere in the country in that you're getting two NFL teams, but you're also getting the media capital of the planet.” This quote does a great job of summing up why I believe the naming rights of the New York Giants and New York Jets stadium was worth the amount of money they spent. Many would argue that New York is one of if not the most influential city in the world and now Metlife is a huge part of that.


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Review by Kevin Matsunaga in KIN 435

The former Meadowlands Stadium, home to the New York Jets and the New York Giants, will be acquiring a new name for the next 20 years. It has been reported that the insurer Metlife has agreed to a deal that could have their name secure in the area in the largest marketing city in America. The stadium’s name has been changed to Metlife Stadium and it will last for 20 years. The New York Post has reported that the deal could be worth $20 million for 20 years, which sums up to a whopping $400 million in a two-decade span.

This sponsorship sale has large implications in the marketing world mostly because it stands in the mecca of world marketing. Matt Higgins, the New York Jets’ executive vice president of business affairs, said, “It’s got to be the right deal. The value proposition that we’ve offered is unlike anything anywhere in the country in that you’re getting two NFL teams, but you’re also getting the media capital of the planet.”

Metlife already has significant sponsorship rights at the stadium, which cost $1.6 billion when the contract began last year. Metlife is now one of four cornerstone partners with sponsorship deals at the new Metlife Stadium along with Verizon, Pepsi, and Budweiser.

Since the city of New York has two football teams, that makes this deal all the more juicy for Metlife. Sponsors of other NFL teams will only be able to market during the home games. Which in an NFL season will be a total of 8 games. But since Metlife Stadium is host to two NFL teams, that guarantees that their will be home games almost every week of the NFL season.

Tuesday, September 13, 2011

"NBA and Sprint connect for deal"

From the Sports Business Journal

Review by Frank Ramunni in KIN 332 (Section 2)

In a recent article written the week of September 5, 2011 in Sports Business Journal it was determined that the National Basketball Association and Sprint Mobile have come to an agreement on a four year sponsorship deal. The deal was successfully completed due to the NBA and T-Mobile terminating their once existing contract. The new sponsorship deal was kept quiet to many most likely because of the current lockout the league is in. One of the more impressive parts of this deal is the price, a $45 million rights fee and a total agreement of $250 million, including media commitments and other miscellaneous agreements. Also, a lot of the talking and meeting about this agreement was happening during the 2011 NBA finals and T-Mobile lost simply because they offered substantially less than Sprint, 15-20 % less. In fact, another interesting part of this deal was that Metro PCS almost out bid Sprint to make a deal happen with the NBA.

In my opinion, I feel that it is not going to be an easy hill to climb for Sprint because of T-Mobile’s apparent success with their marketing and advertising. For many years, I would find myself laughing at Charles Barkley and Dwayne Wade T-Mobile commercials and they obviously must have made tons of money through their advertising for the company because they had such a long and thorough contract with the NBA. I also feel that the aspect of this contract that has the potential to make Sprint even more money is the fact that they are coming out with the iPhone. The iPhone will enable the use of many downloadable applications that Sprint will be linked to the NBA with. All in all, I think the deal that Sprint Mobile and the NBA have come to have the potential and opportunities to do big things and make large strides in the business marketing and advertising departments.

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Review by Jeff Wilkins in KIN 332 (Section 2)

For my article review, I decided to pick out an article from the Sports Business Daily Journal. In the Sports Business Daily Journal, I chose the article titled “NBA and Sprint Connect for Deal.” In the article, staff writer John Lombardo discusses how Sprint came to an agreement of $250 million dollars and teamed up to sponsor the NBA. As we all know, the NBA is going through a lockout and Sprint quietly came to an agreement with the league.

Sprint and the NBA came to an agreement of $45 million for their rights fee agreeing to a four year sponsorship. The $45 million rights fee was one of the largest ever collected by the league. The total value came out to $250 million due to media commitments and contractual requirements. Before talking to Sprint, the NBA had been talking to AT&T during the finals in June but couldn’t come to an agreement. The new mobile network, MetroPCS, had been competing with Sprint in regards to who would sign with the NBA but Sprint had come out as the leader paying 15-20% more than the NBA wireless sponsor T-Mobile had been paying. T-Mobile had been the league’s most active sponsor over the past six years and now Sprint will be taking over.

When talking about the marketing and sports marketing implications from the following article, Sprint will be marketing its new iPhone coming out in October in hopes that it will be able to explode with sales due to the fact that the NBA plans to launch in early November. Through the NBA, Sprint will be able to market its 4G wireless internet service and build brand awareness to viewers and people within the NBA. Sprint hasn’t been a top-level sponsor since losing NFL rights after the 2009 season. They are hoping to be able to build up their network through the NBA and increase sales as the season moves on.

"WNBA lands Boost Mobile as top sponsor"

From the Sports Business Journal

Review by Megan Fessler in KIN 332 (Section 2)

In one of the more beneficial and definitely the mostwide-ranging sponsorships in its history, the WNBA has signed Boost Mobile asits one and only “marquee” partner in a contract that will put the company’slogo on most WNBA team jerseys. The WNBAand Boost Mobile are in an agreement to a four year contract and a ten milliondollar partnership. Boost Mobile willalso be the title sponsor for the WNBA All-star games, the playoffs, andfinals. This deal size makes BoostMobile the most significant sponsorship in the history of the WNBA. The addition of Boost Mobile also gives theleague fifteen corporate market partnerships. The Boost Mobile logo will be on the front of the jerseys, under thenumber in a patch.

The Boost Mobile contract is a wide-ragingsponsorship. Not only are theyadvertising on the front of the teams jerseys’, but they will also get floors,pole pads, and courtside signage in the WNBA arenas. Boost Mobile will also be the present sponsorof WNBA top fifteen moment’s program, which is a special to be aired on NBA TVon Fridays and online for fans to vote. “The Boost Mobile deal is good for the league and good for the teams,”said Greg Bibb, chief operating officer of the Washington Mystics, the mostrecent team to sign a local jersey sponsorship. This contract will most definitely raise positive awareness of theleague.

Other WNBA teams will still be able to sign their ownlocal marquee deals. The assets of thisdeal, jersey visibility to the court, visibility to the overall stature of theBoost Mobile brand, it’s a great alignment. It is a cost-effective way to side with with a premier women’s sports brand.

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Review by Stephen Beiro in KIN 332 (Section 2)

Boost Mobileand the WNBA agreed on a four-year/ $10 million deal that makes Boost Mobilethe sole marquee partner of the WNBA and the league's 15th corporate marketingpartnership. This deal puts a Boost Mobile patch just below the numbers onjerseys the 10 WNBA teams who don't already have wireless sponsorship deals.Boost Mobile becomes the title sponsor of the WNBA All-Star Game, and also thepresenting sponsor of this year's WNBA playoffs and Finals. Boost Mobile willhave floor and courtside signage in WNBA arenas and is one of the biggest dealsin league history. League-level marquee talks have been around for a while andit is great for the WNBA and the teams to have a marquee sponsor. The marqueelevel is a new top marketing tier for the league which includes jersey, court,and much other exposure. Boost Mobile is always trying to find new ways to getbrand exposure at good value and found it with the WNBA. The female athleticaudience will now be aware of Boost Mobile, which increases potentialcustomers. Both sides see the deal as a great opportunity for exposure andexpansion and want to make the partnership as successful as possible. Teamsthat already have sponsorship deals and put logos on their jerseys will have toshare the space with Boost Mobile. Multiple local sponsorships are allowed butthe Boost Mobile logo will have to be seen if the team does not have anotherwireless sponsorship. Both sides are excited about the deal which shows thatthere is a great chance for success between the two organizations.

Friday, September 9, 2011

"New Era Plots Aggressive Five-Year Growth Plan"

From SGB Weekly: http://www.sportsonesource.com/news/weekly/sgbweekly/archive/sgbw_1110lo.pdf

Review by Mason Bryan in KIN 435

Thomas J. Ryan’s article, “New Era Plots Aggressive Five-Year Growth Plan,” was a very interesting read that provided insight into the world of marketing and sales. Although the article included points regarding New Era’s sponsorship of the NFL in the 2012 season, I was disappointed with the lack of details about the sponsorship itself. New Era became one of the five official “on-field” sponsors of the National Football League (joining Gatorade, Canon, Nike, and Motorola), yet nothing regarding the price of the deal or the length of the contract is mentioned in the article and I believe that those are key points into educating the reader about the business of sports sponsorship.

Other than the fact that the details of the NFL deal aren’t made known, the article provided a great amount of detail into the world of marketing and sales for an up and coming company in the sports industry. New Era, as many already know, is the official on field cap of Major League Baseball. With annual sales of $500 million, the company is seeking new ways to double their sales by 2015. By doing so they have not only sponsored the NFL and become their official on field cap, but have done the same for the Canadian Football League, and have become the title sponsor of the Pinstripe Bowl, an annual college football bowl game played at Yankee Stadium. The company has also started a women’s apparel line and began their “Fly Your Own Flag” campaign in hopes of reaching new markets. Through the use of marketing and sponsorship, New Era is making its product(s) known to the public on a much larger scale and, in my opinion, will have no troubles doubling their sales within a five-year span.

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Review by Courtney Gannon in KIN 435

“New Era Plots Aggressive Five-year Growth Plan”, written by Thomas J. Ryan, discusses a recent change in the New Era Company and current plans to further expand the company. New Era recently became the NFL’s official on-field headwear licensee. New Era, along with Nike, Gatorade, Canon, and Motorola is a brand that will have exclusive sideline rights starting in the 2012 season. Along with the licensing agreement with NFL, New Era signed a three-year agreement to be the official headwear sponsor of the Canadian Football League. The company has become focused on expanding sales to 1 billion dollars annually within five years. As part of the five-year plan, New Era has had two acquisitions to help further the growth of the company. It acquired 5th and Ocean, a women’s apparel company and MARC4, one of Brazil’s fashion brand management companies. In the “New Era Plots Five-year Growth Plan” article, Chris Koch, CEO of New Era, referred to acquisitions by stating, “It’s definitely part of our growth strategy.” Acquisitions are a large part of the 5-year growth plan and will continue to be used in aiding the expansion of the company. Lastly, “Fly Your Own Flag,” is a campaign that aims to express individuality and show that New Era produces hats that can be used for all types of people and reasons. It consists of print and social media, as well as ambassadors from different industries. New Era wants to reach the 1 billion dollar goal by 2015 and hope to expand into all of the major cities around the world.

The sales and marketing used by New Era have made it possible for the company to become as big as it has and continue to expand. Since New Era focuses on different markets other than sports, it has the ability to expand and have customers from a variety of markets. Also, by becoming the official headwear licensee of NFL, New Era can almost double its market because now there are buyers from both the NFL and the MLB. Acquiring 5th and Ocean and MARC4 has also helped increase sales not only domestically, but internationally as well. New Era is not only focused in one specific market in a certain part of the world, which is beneficial to getting closer to the ultimate goal. Becoming the official licensee of headwear for the NFL, acquiring 5th and Ocean and MARC4, and focusing on markets other than sports, has and will continue to play a crucial role in becoming closer to obtaining the 1 billion dollar status.

Wednesday, September 7, 2011

"NFL Back On Field, And Deals Pile Up"

From the Wall Street Journal:

Reviewed by Zack Siska in KIN 332 (Section 1)

I read an article called “NFL Back On Field, And Deals Pile Up” by Matthew Futterman in the Wall Street Journal. The article discusses the new marketing sponsorships that the NFL has signed since ending the lockout. The major deal was a 10 year extension with PepsiCo Inc. The agreement could be valued at over 2 billion dollars through the 2022 playoffs, making it one of the biggest sponsorship deals in sports history. Gatorade is a Pepsi brand and PepsiCo needed to make sure the orange Gatorade coolers stayed on the sidelines.

The NFL also signed sponsorship deals with insurer USAA, Bose Corp, and General Motors. In addition to the Pepsi deal, NFL sponsorship revenue will jump 15% this year from last year. The league revenue is projected to be a record $9.5 billion. Not only are the sponsorships increasing, but the projected attendance is projected to be higher than last year.

These deals have major marketing implications within the NFL. Now that Pepsi is signed through 2022, Powerade or other sport drink companies will not get a shot at sponsoring the NFL.

"UPS, MillerCoors go in — and go big — on campus"

From the Sports Business Journal: http://www.sportsbusinessdaily.com/Journal/Issues/2011/08/29/Marketing-and-Sponsorship/UPS-MillerCoors.aspx

Review by Dana O'Brien in KIN 332 (section 1)

UPS and MillerCoors, two large powerhouses in the sports and marketing industry are working with a number of teams and conferences in collegiate athletics. Over the years, particularly for the beer industry is has been difficult to get sponsorships with collegiate athletics. Many schools such as North Carolina won’t even accept it, they do not permit any advertising or promotion of alcoholic beverages even if its responsibility messaging. However other schools take advantage of selling beer during football, basketball and baseball games because of the revenue it generates. MillerCoors have made deals with the schools they are working with that they will provide visible responsibility messaging such as “21 means 21”. They are also not allowed to use the logos of schools on any of their products. However, Millercoors marks and school logos can appear on co-branded merchandise such as t-shirts, hats, koozies or coolers. MillerCoors is also creating a grant program called “Great Plays” which provides funds for on-campus programs that address alcohol responsibility issues. I think MillerCoors is doing enough to make sure their target market is reached and going above what is expected to ensure their best to fight against underage drinking. After all MillerCoors is a large company that merged together they are trying to find other ways to generate revenue after losing their contract with the NFL. Its going to take some time before other schools give into selling beer at their sporting events because of the underage drinking problems that could come with it. UPS has a deal with close to 70 teams and that will allow UPS to be on the ground for college football season with access to signage, TV and radio advertising, game programs, web advertising, hospitality and tickets. Many schools will be turning to UPS for their primary way to ship and logistics.